Millions Expect Tax Refunds in Coming Weeks
More than 10 million Australians expect to receive a tax refund this financial year, new research by Finder revealed. The average refund expected sits at $1,519, offering a financial lifeline for many households. Finder’s head of consumer research Graham Cooke said taxpayers would rush from July 1 to access this cash boost.
Cooke noted, “Australians who are living month to month are very eager to access their tax refunds to ease financial strain.” The research showed 7 per cent of Australians called the refund “critical” to their financial wellbeing, while nearly one in four said it was “very important”.
Refunds Vital for Households Under Pressure
The refund carries significant weight for Australians managing rising expenses. “With many households grappling with the cost of living, these refunds offer a much-needed reprieve,” Cooke added. “For some, the refund is essential to cover essential expenses, such as keeping the lights on.”
A further 41 per cent said the refund was “somewhat important” to their financial situation. The survey also highlighted that women were more likely to depend on the refund. Around 39 per cent of women said it was “critical” or “very important”, compared to 24 per cent of men.
Some Expect Bills Instead of Refunds
Not everyone anticipates good news from the tax office this year. Around 18 per cent of Australians surveyed said they expected to receive a tax bill instead of a refund. With tax time approaching, the ATO has issued warnings about rushing the process and making costly mistakes.
Experts Advise Careful Planning and Patience
Cooke recommended Australians take a thoughtful approach with their refunds. “Consider using the funds to pay down debt, deposit into a high-interest savings account, or contribute to superannuation to maximise long-term benefits,” he advised.
CPA Australia tax lead Jenny Wong also urged Australians not to rush when lodging their returns. She highlighted the risks of filing too early and missing out on legitimate deductions. “Firing the starting pistol on your tax return too quickly means you could end up shooting yourself in the foot,” Wong said.
Lodging Early May Not Deliver Faster Refunds
Wong addressed a common misunderstanding among taxpayers. “There’s a misconception that lodging early means you’ll receive your refund first, but it’s not as simple as that,” she said. She warned that early lodgers often need to amend returns, leading to delays and confusion later.
Wong encouraged taxpayers to wait for the ATO to pre-fill information. This usually occurs by late July and includes data from banks, government agencies, insurers, and employers. “It’s best to wait. It’ll save you in the long run,” Wong said.
ATO Targets Common Tax Mistakes
The ATO will focus on key areas where mistakes often occur during tax season. These include work-related expenses, deductions for working from home, and income declared from multiple sources. Australians who rush may overlook changes or miss key claims in these categories.
ATO data shows that taxpayers frequently overstate deductions or fail to report all income accurately. The agency encourages taxpayers to take time gathering receipts and records before submitting returns.
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Financial Pressure Driving Refund Urgency
The cost-of-living crisis has left many households reliant on refunds to cover essential costs. Finder’s research shows that for some Australians, the refund is the only opportunity to catch up financially. Cooke said the rush to lodge early reflects growing financial stress across the country.
Experts continue to advise planning and patience. Taking time to review records, wait for pre-filled information, and seek advice may improve outcomes. The ATO and accounting bodies stress the importance of accuracy over speed.
Tax Season Begins in July
Australians can begin lodging tax returns from July 1, though the ATO recommends waiting until late July for pre-filled data. This helps ensure accuracy and reduces the risk of audits or amendments.
Refunds can provide meaningful support, but errors or rushed lodgements could create setbacks. Australians are urged to use caution, confirm all figures, and consider financial goals before lodging.
The ATO expects millions of returns in July. Taxpayers must ensure their information is complete and correct to avoid complications and delays.
